Manic Monday
Quick update
Pretty historic day when the VIX touched 65. This happened only twice in history: 2020 (pandemic) and 2008 (financial crisis).
However, we (still) believe this sell-off is an unwind, (gamma) hedging, deleveraging, margin calls and basically selling everything (correlation equals1) instead of a fundamental shift. Obviously things could change if and when the world is completely on (economic) fire.
Over a billon USD in liquidations today: https://cointelegraph.com/news/crypto-market-crash-1b-liquidations-2024
Important for the crypto side of things is that we have not seen platform outages (to our knowledge and while in TradFi: https://www.nytimes.com/2024/08/05/business/charles-schwab-fidelity-online-brokerage-outages.html) , de-pegging of stablecoins and unstable defi-protocols. AAVE for instance confirmed business as usual:
Although no exposure, we will keep monitoring (de)centralized exchanges and DeFi protocols.
Equity indices and Crypto off their worst levels at time of writing.
Next update the regular one on Sunday. Stay safe.